New barrels could mean Saugatuck poised to join ranks of top craft breweries in state

Monday

Jun 2, 2014 at 7:00 AM

By Brian.VanOchten@hollandsentinel.com(616) 546-4279

A lot of microbrewing operations in Michigan dream about joining Bell’s in Galesburg, Founders in Grand Rapids and New Holland right here in Holland amid the big leagues of craft beer.The makers of Oberon, Breakfast Stout and Dragon’s Milk, respectively, have earned acclaim for popular labels that are being distributed to multiple markets throughout the U.S.It is no small achievement to secure membership into that elite club.Yet, that’s precisely what Saugatuck Brewing Company seems prepared to do after installing a new state-of-the-art, 40-barrel brewing system that is capable of quadrupling its production.“I think we’re either the ninth- or 10th-largest brewery in the state right now,” SBC Vice President Kerry O’Donohue said. “We’re still a small brewery, but we’re wanting to grow. I think that’s going to happen with putting in our new system. I think we might start moving up that list.”The question isn’t whether SBC, 2948 Blue Star Hwy., in Douglas, is likely to move up the list of the largest craft beer producers in the state, but perhaps how far it might climb.It has been honored for signature labels such as Oval Beach Blonde, Neopolitan Milk Stout and Michigan Wheat Ale in the past. Its American-style brown ale, Bonfire Brown, captured a gold medal in the prestigious 2014 World Beer Cup competition in Denver in April.The accolades for Bonfire Brown and increasing demand for several of its other labels have boosted orders from many pubs in Michigan and elsewhere. SBC began shipping its products to the northern Ohio and St. Paul, Minn., markets as part of new distribution deals announced last month.All of which explains why SBC invested $360,000 in a new highly automated brewing system.“I love it. We’re doing four times as much in one cycle,” said SBC Production Manager Steven Scheerhorn, who was limited to a 10-barrel system for the past 2½ years. “It’ll be a lot more efficient for us.“Technically, this puts us in the big league.”SBC, which installed the stainless steel equipment in mid-May, had doubled its production for five consecutive years from 2008-12 before plateauing at 5,000 barrels last year.It increased production just 25 percent in 2013 because it had maxed out its equipment, according to O’Donohue.“We were limited on our growth by the existing infrastructure,” he said.The changeover to the 40-barrel system will help SBC produce somewhere between 8,000 to 10,000 barrels this year. It will be able to reach 20,000 barrels in subsequent years.“Our growth has been about as fast as any other brewery,” O’Donohue said. “It didn’t happen overnight. It has been step-by-step, state-by-state. We’ve focused a lot more on marketing in the past year and a half. People who like craft beer are going to find us.”SBC started out as a humble operation.It began in a small warehouse across from its current location along Blue Star Highway. Exponential growth has occurred since it moved into a strip development owned by two local real-estate investors.The brewhouse, hidden at the rear of the property, is a collection of mammoth stainless steel brewing tanks, fermenters, a bottling and labeling line and computer-controlled equipment. A new gleaming 70,000-pound grain silo sits outside the rear loading bay.It’s such a soothing atmosphere, employees actually whistle while they work.“It’s a great industry and a great brotherhood,” Scheerhorn said of the entire operation, which includes 50 full-time employees and an additional 20 during the summer season. “Everyone here gets along really well.”Initially, SBC produced all of its beer in five small kettles.It still maintains the same small-batch system, but instead uses it to conduct weekly classes where anyone can register to concoct a specialty brew while brewpub patrons watch.SBC has a special license from the state of Michigan to brew right on the premises.The 15-gallon stainless steel kettles with copper accents each are capable of producing a half barrel of beer.“There’s no place else in Michigan that does this,” said assistant brewer Joe Herrick, who has served three tours of duty in Iraq as a Sgt. 1st Class in the U.S. Army. “It’s a lot of fun.“I do bachelor parties. I’ve had couples come here and brew something they serve to guests at their wedding reception,” he added. “This is all we could make when we were in the warehouse across the street.”So much for making small batches these days.SBC’s reputation has increased right along with its production levels the past few years.“We still are a tourist town,” O’Donohue admitted. “We get more and more people from out of the area who come in here and say, ‘I’ve heard about this place.’ We get that all the time.“People come in and think that’s where they do all of the brewing,” he said of the five small kettles. “We decided to start tours to make the world aware that we’re a production brewery.”It is a production brewery that has some big-league aspirations.— Follow this reporter on Twitter @BizHolland